MARKHAM CITY: A MELTING POT OF CULTURES

Markham city is know for its divers cultures, technological hubs which include a lot of innovative start ups, and also its appreciation for ancient history. The city has many cultural sites, theme parks and recreational facilities. Buying a home in Markham is going to be a great move. A Markham real estate lawyer is always ready to assist you with any legal hurdles you might face when trying to acquire any type of property.

 

HOW TO GET A GREAT PRICE WHEN BUYING A HOME: MARKHAM CITY

The one common thing every home owner has in common is the need to not get ripped of during any form of transaction. It doesn’t matter what the state of the real estate market is, it is important for one to pay a fair price. However, it is a tricky situation especially in a tight market to know if getting a good deal on a home.

It is important to note that when looking a home in Markham, you do a little bit of research by comparing prices of homes to have a feel of the market. You should be also able to identify whether the price of homes in whatever area in Markham is appreciating or depreciating. You can employ the services of a real estate agent and visit homes and compare prices. Be sure to also take advice from your real estate agent on the current prices in the market.

Below are 10 tips on how to get a fair deal for a home according to investopedia.com. Be sure to take notes when considering buying a home in Markham.

 

1. Consider Recently Sold Properties

A comparable property is one that is similar in size, condition, neighbourhood, and amenities to the one you’re buying. One 1,200-square-foot, recently remodelled, one-story home with an attached garage should be listed at roughly the same price as a similar 1,200-square-foot home in the same neighbourhood. That said, you can also gain valuable information by looking at how the property you’re interested in compares in price with different houses. Is it considerably less expensive than larger or nicer properties? Is it more expensive than smaller or less attractive houses? 

Your real estate agent is the best source of accurate, up-to-date information on comparable properties (also known as “comps” or “comparables”). You can also look at comparables that are currently in escrow, meaning that the property has a buyer, but the sale has not yet been completed.

 

2. Check Out Comparable Properties on the Market

In this case you can actually visit other homes and get a tactile sense of how their size, condition, and amenities compare with the property you’re considering. You can then compare prices and see what seems fair. Reasonable sellers know that they must price their properties similarly to market comparables if they want to be competitive.

 

3. Look at Unsold Comparables

If the house you’re considering is priced similarly to homes taken off the market because they didn’t sell, the house in question may be overpriced. Also, if there are many similar properties on the market, prices should be lower, especially if those properties are vacant.

Check out the unsold inventory index for information about current supply and demand in the housing market. This index attempts to measure how long it will take for all the homes currently on the market to be sold, given the rate at which homes are currently selling.

 

4. Learn About Market Conditions, Appreciation

Have prices been going up or down recently? In a market seller’s properties will likely be somewhat overpriced, and in a buyer’s market properties are apt to be underpriced. It all depends on where the  market currently sits on the real estate boom-and-bust curve.

Even in a seller’s market, properties may not be overpriced if the market is on the upswing and not near its peak. Conversely, properties can be overpriced even in a buyer’s market if prices have only recently begun to decline. Of course, it can be difficult to see the peaks and valleys until they’re history. Also, consider the impact of mortgage interests rates and the job market on the economy. 

 

5. Be Wary of for-Sale-by-Owner Properties 

A for sale by owner (FSBO) property should be discounted to reflect the fact that there is no 2.5% to 3% (on average) seller’s agent’s commission, something that many sellers don’t take into consideration when deciding how to set a price for a house. Another potential problem with FSBO is that the seller may not have had an agent’s guidance in setting a reasonable price in the first place, or they may have been so unhappy with an agent’s suggestion as to decide to go it alone. In any of these situations, the property may be overpriced.

 

6. Explore the Expected Appreciation

The future prospects for your chosen neighbourhood can have an impact on price. If positive development is planned, such as a major mall being built, the extension of light rail to the neighbourhood, or a large new company moving to the area, the prospects of future home appreciation look good. Even small developments, such as plans to add more roads or build a new school, can be a good sign.

On the other hand, if grocery stores and gas stations are closing down, the home price should be lower, so as to reflect that, and you should probably reconsider moving to the area. The development of new housing can go either way. It can mean that the area is hot and likely to be in high demand in the future, thus increasing your home’s value, or it can result in a surplus of housing, which will lower the value of all the homes in the area.

 

7. Ask Your Real Estate Agent

Without even analysing the data, your real estate agent is likely to have a good gut sense (thanks to experience) of whether the property is priced appropriately or not and what a fair offering price might be.

 

8. Ask Yourself: Does the Price Feel Fair?

If you’re not happy with the property, the price will never seem fair, even if you get a bargain. Even if you pay a little over market value for a home you love, you won’t really care in the end.  

 

9. Test the Waters

Even in a seller’s market, you can always make an offer below list price, just to see how the seller reacts. Some sellers list properties for the lowest price they’re willing to take, because they don’t want to negotiate. Others list their homes for higher than they expect to earn, because they either expect to negotiate downward or want to see if someone will make an offer at the higher price. If such a seller accepts your price or counteroffer , you’ll get an indication that the property probably wasn’t worth what it was listed for, and you have a good chance at getting a fair deal.  

On the other hand, some sellers may underprice their properties in the hope of generating lots of interest and sparking a bidding war. Unlike on eBay, however, the seller doesn’t have to simply sell to the highest bidder; sellers can reject any and all offers that don’t meet their expectations.   

If you have your heart set on the property, be warned that some sellers could be offended by lowball  offers and may refuse to work with you should you choose to employ such a tactic. Also, when you offer less than the list price, you may increase your risk of being outbid by another buyer.    

 

10. Get an Appraisal and an Inspection

Once you’re under contract, the lender will have an appraisal of the property done (typically at your expense) to protect its financial interests. The lender wants to make sure that if you stop making your mortgage payments, it’ll be able to get a reasonable amount of its money back when it forecloses on your home. If the appraisal comes in at considerably less than your offering price, you may not be getting a fair deal. In fact, the lender may not even let you purchase the home unless the seller is willing to lower the price.

A home inspection, also completed after you’re under contract, will give you another way to gauge your offering price. If the home needs many expensive repairs, you’ll want to ask the seller to either make the repairs for you or discount the purchase price so you can make them yourself. 

To summarise, when looking to buy a new home in Markham, you need to understand how the housing is priced in order to make informed decisions. By following the steps listed and explained in this article you should have a fair idea on what to expected when you decide to look for homes to buy.